should I cancel direct debits??

shelly_22

Hi there
yesterday I posted my first admission of being it debt.. See I said it I AM IN DEBT!! We have as much going out as we have coming in, and that is just on what we owe. I had some really good advice yesterday on where to start getting out of this mess. I have contacted the cccs on line and i am starting to collect toghther all the info on what and who I owe.
The advice I need is this.... We get paid next friday (we get paid monthly) and within a week all of our money will be gone with paying all our direct debits. Leaving no money for general living, ie....food. Our overdraft limit is at its limit too. Which will leave us spending on credit cards just to live..thus, getting deeper in debt. Shall I cancel all my non essential direct debits now before they are all due to come out of the bank again or should I wait and see what the cccs say?
Thankyou for all your support x

newmoneysaver_2

Hi Shelly,
I don't know the answer to this, but I am sure someone more knowledgeable will be along shortly.
Congratulations on you LBM and I'm sure with the help of the board you will be well on your way to debtfreeness soon!

bimbo82

Hi Shelly,
I don't know the answer to this too - but I am also new to this site and there are so many helpful people on here that I am SURE someone will be able to provide you with some fantastic advice.

Good luck!

Teacher2301

Don't cancel direct debits unless you're sure you don't owe anymore money. Direct debits are great if you know how much you've got but some companies vary the amount as you probably know. Are the DD's are for services? Phone up the providers and tell them of your plans and cancel the service over the phone - say you will also cancel the direct debit but ask how much you have left to pay for the service up until the date you cancelled (some service providers have avi-davits(spelling?) which tie you in - so check the small print).

Posting a SOA is useful forpeople to see - so that we can help you decide what are non-essential DD's.

Good luck

fatbelly

It's difficult to say precisely what you should do without seeing the whole picture. Things will be clearer when you post an SoA.

But if CCCS are going to put you on a DMP at reduced payments then you will have to cancel D/Ds to your NON-PRIORITY creditors and probably open a new bank account for your income and essential D/Ds too.

Certainly do not cancel direct debits for essentials like car insurance, tv license, mortgage but move them to your new account.

Hopefully you will get full instructions from CCCS.

ms_london

Personally I would - and we are talking about just for your debts, not your mortgage or other necessities. I am not implying that you wont be making your payment, but once you have worked out what you have to play with, you can work out what you can afford to pay each creditor, rather than the creditor taking what they like. If you can afford the minimum repayment they are going to take, then you cant afford it. xx

Limana68

HI there
I am on a dmp with cccs, and I did cancel all my non essential direct debits straight away, as like you I would not be able to manage and couldnt use any credit cards as they were all maxed out! It meant that the creditors nevr got anything for a few mths and I had tel calls from them but I just explained I was on a dmp and gave them my client no and most of them have stopped hassling me now. It also meant I was able to get some much needed money together for my first payment to cccs.
After I spoke with cccs I was advised to sort out a new bank acct and cancel all direct debits and re arrange the prority ones with the new bank.
Cccs have been great!

Good luck

Li

Benthosboy

In my humble opinion, get rid of anything that is not essential.

When I had my LBM, the first thing I did was just that. I had dd's set up for a whole host of hobbies that I do such as RNLI, RSPB, diving, wildlife, etc, etc. As I'm in a fair depth of debt, I simply cannot justify that money any more so I've cancelled the dd's and told the people concerned why I've done it. Without exception, every one of them understands why and has wished me well.

As much as it grieves me, until my debts are clear my hobbies are on the back burner because the money will be better served paying off the debts. ANd to be honest, there are plenty of things to pass the time that don't cost anything

Martyn.

grace

I think probably a quick phone call the CCCS is the answer they will be able to geive you advise.

payingfornowt

I was in a similar position about a week ago…. Had my LBM as they say. I cancelled my direct debit’s, I couldn’t afford the charges of them bouncing, I have had about 50 phone calls from about 47 different countries since but managed to speak to them and arrange suitable payment dates and even some accepted a “token” payment for a few months.

I have not taken out a DMP yet, I am going to see if I can make it on my own for a few months cause my income just about beats my outgoings.

Anyway, I couldn’t really comment from a mortgage point of view, I rent, but that is number 1 priority for me, I only missed payments on unsecured debt’s and my mobile. I am going to be charged a few “late fee’s” but it is less than the charges of bounced DD’s.

Anyway, I have not yet drawn up an SOA, I am doing a spending diary over a month first to see exactly what I spend, I think it has helped already I was ashamed to put my 5th Twix of the week on yesterday so didn’t have one! Give it a try, its at www.spendingdiary.com

Good luck and well done, I bet you feel better already, I know I do.